NOW PLAYING

Iraqi Kurdistan's oil flows to Turkey

Ankara pledges not to export supplies without consent from Baghdad, which claims it has sole authority over Iraqi oil.

02 Jan 2014 13:50 GMT

Baghdad says Kurdish efforts towards oil independence could lead to the break-up of the country [AP]

Crude oil has started flowing from Iraqi Kurdistan to Turkey but will not be exported worldwide without the Iraqi central government's permission.

Taner Yildiz, Turkish energy minister, said on Thursday that the oil would be kept in storage at the country's Ceyhan export hub and that he hoped that Ankara would reach a deal with Baghdad before the end of January.

"The flow of crude oil from Iraq has begun. It is being stored. It will not be exported without the consent of the Iraqi government," Yildiz said.

Iraq's central government has been angered by energy deals between Turkey and Iraqi Kurdistan because it claims it alone has the authority to manage Iraqi oil.

It says Kurdish efforts towards oil independence could lead to the break-up of the country.

However, sources close to the deal said that Turkey signed a multi-billion-dollar energy package with Iraqi Kurdistan in November that would help transform the Iraqi region into an oil and gas powerhouse.